Ripple Lawsuit Fresh Update: Attorney Not Confident About Latest Filing, Here’s Why

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The U.S. Securities and Exchange Commission (SEC) and Ripple have made a joint request to a Manhattan court to dissolve an existing injunction in their ongoing legal case. Along with this, they’ve asked for the $125 million civil penalty currently held in escrow to be released.

According to the proposal, $50 million would go to the SEC, while the remaining $75 million would be returned to Ripple. This move is part of both parties’ efforts to settle the long-running case, avoid further court battles, and close pending appeals.

In their new court filing, both Ripple and the SEC argued that “exceptional circumstances” now exist that justify changing Judge Torres’s earlier decision. These include a settlement between the two sides, recent shifts in the SEC’s crypto policy, and a mutual desire to avoid dragging the case on any longer.

Attorney Expresses Doubt

However, this request comes just after Judge Torres denied a similar proposal in May. Legal expert Fred Rispoli shared his doubts about the new filing. He explained that the previous denial showed the judge was clearly frustrated and expected a stronger, more detailed motion this time. According to Rispoli, instead of addressing the SEC’s failures in regulating crypto and offering a sincere apology from Ripple, the new filing only briefly mentioned other case dismissals and a small note about the SEC’s crypto task force.

Rispoli admitted that while the parties have cited enough legal reasons for the court to agree, they did the same in the last attempt — which was denied. He called this one of the few missteps by Ripple’s legal team and warned that Judge Torres might once again reject it.

Still, Rispoli remains hopeful that the judge might be ready to wrap up the case. Even if the injunction stays in place, Ripple can continue selling XRP to institutions, though not in the same way as before 2018. While some cautious firms might stay away, those open to innovation could still move forward.

The crypto world now waits to see how Judge Torres responds to this latest chapter in the long-running Ripple-SEC legal battle.